Investing.com - U.S. oil futures held on to heavy losses on Wednesday, after a U.S. government report showed that oil supplies rose to the highest level on record last week.
On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in June traded at $99.79 a barrel during U.S. morning hours, down 1.47%, or $1.49 a barrel. Prices were at $99.50 a barrel prior to the release of the supply data.
Nymex oil fell to a daily low of $99.42 a barrel earlier in the session, the weakest level since April 3. Prices rose 0.44%, or 44 cents, on Tuesday to settle at $101.28.
Futures were likely to find support at $99.07 a barrel, the low from April 3 and resistance at $102.20 a barrel, the high from April 29.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 1.7 million barrels in the week ended April 25, compared to expectations for an increase of 2.3 million barrels.
Total U.S. crude oil inventories stood at 399.4 million barrels as of last week, the highest level on record.
The report also showed that total motor gasoline inventories increased by 1.6 million barrels, confounding forecasts for a decline of 0.6 million barrels, while distillate stockpiles increased by 1.9 million barrels, compared to expectations for a gain of 0.6 million barrels.
Market players now prepared for the outcome of the Federal Reserve’s policy meeting later in the day, amid expectations for another $10 billion reduction in the central bank’s now $65-billion-a-month stimulus program.
Data released earlier showed that the U.S. economy grew at a seasonally adjusted annual rate of 0.1% in the first quarter, missing expectations for growth of 1.2%.
A separate report showed that manufacturing activity in the Chicago region rose to a seasonally adjusted 63.0 this month from a reading of 55.9 in March. Analysts had expected the index to improve to 56.7 in April.
Meanwhile, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 220,000 in April, above expectations for an increase of 210,000.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery fell 1.03%, or $1.12, to trade at $107.86 a barrel, while the spread between the Brent and U.S. crude contracts stood at $8.07 a barrel.
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